The equity capital/stockholders’ equity can also be viewed as a company’s net assets. You can calculate this by subtracting the total assets from the total liabilities. Shareholders’ equity, often referred to as stockholders’ equity, is a crucial financial metric in accounting, representing the residual interest in the assets of a corporation after deducting its liabilities. […]
However, there is always the chance that something gets misreported—like if you’re paying with petty cash and don’t record a $5 purchase. Of course, your general ledger’s appearance will ultimately depend on your personal preference and choice of software. For example, it may also contain details like a reference number or activity type for each […]
Examples of contra liabilities are Discounts on Bonds and Notes Payable and Short-Term Portion of Long-Term Debt. Contra Liability Account – A contra liability account is a liability that carries a debit balance and decreases other liabilities on the balance sheet. If you your company uses the accrual accounting method, gross sales include all your […]
When employing the LIFO perpetual inventory system, calculating the Cost of Goods Sold (COGS) requires a methodical approach, as it demands frequent updates. As each inventory transaction occurs, businesses must ensure that the most recent purchase costs are allocated to the goods sold. This process is essential for accurately determining the COGS, which impacts gross […]
The second scenario that could occur is that the company really wants the new trailer, and is willing to sell the old one for only $65,000. In addition, there is a loss of $8,000 recorded on the income statement because only $65,000 was received for the old trailer when its book value was $73,000. If […]
However, when a company divests an asset, the transaction is considered “cash in” for calculating cash from investing. For more on how cash flow from investing activities is calculated, please see Cash Flow From Investing Activities. Cash and cash equivalents are consolidated into a single line item on a company’s balance sheet. It reports the value […]
McBride is an attorney with a Juris Doctor from Case Western Reserve University and a Master of Science in accounting from the University of Connecticut. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . Our mission is to improve educational access and learning for everyone. This will result in an […]
These informed decisions help in maximizing productivity and profitability. Let’s go through all the steps for calculating total manufacturing costs. Now that you are familiar with the components that constitute manufacturing costs, let’s move on to the process of calculating these expenses. The Difference Between Manufacturing and Nonmanufacturing Costs By looking at the historic data […]
Existing and upcoming workers will need to prepare by learning new skills, including the ability to use AI to complement their human capabilities, experts said. AI is already disrupting jobs, posing security challenges and raising ethical questions. But it remains to be seen how the technology will continue to develop and what measures governments may […]
We meticulously and objectively assess each software based on a fixed set of criteria—including pricing, features, ease of use, and customer support—in our internal case study. Clarify complexity with efficient inventory management and integrated payroll and time tracking. Plus, with access for up to 40 users, Enterprise can scale with your business as it grows. […]